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Sound Energy PLC (GB:SOU)
LSE:SOU
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Sound Energy
(LSE:SOU)
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Rating:53Neutral
Price Target:
1.00p
▼(-1.96% Downside)
The score is held back primarily by weak financial performance (large recent losses, rising leverage, and persistent negative cash flow). Technicals are moderately supportive with price above key moving averages and positive MACD. Earnings-call guidance provides some upside from near-term production and contracted sales, but debt and project delays remain meaningful risks, while valuation is constrained by negative earnings and no dividend support.
Sound Energy (SOU) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£19.56M
Dividend YieldN/A
Average Volume (3M)2.05M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
Employees13
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding2,080,622,600
10 Day Avg. Volume1,817,433
30 Day Avg. Volume2,049,575
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.21
Price to Sales (P/S)0.00
P/FCF Ratio-2.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.2
Revenue Forecast (FY)£7.54M
Sound Energy Business Overview & Revenue Model
Company DescriptionSound Energy plc, through its subsidiaries, engages in the exploration, appraisal, and development of oil and gas assets. It holds 75% interests in the Greater Tendrara license covering an area of 14,411 square kilometers; Anoual license totaling an area of 8,873 square kilometers; and Tendrara production concession that covers an area of 133.5 square kilometers located in Eastern Morocco, as well as Sidi Mokhtar license covering an area of 4,712 square kilometers located in Southern Morocco. The company was formerly known as Sound Oil Plc and changed its name to Sound Energy plc in September 2015. Sound Energy plc was incorporated in 2005 and is based in London, the United Kingdom.
How the Company Makes Money
Sound Energy Earnings Call Summary
Earnings Call Date:Sep 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
Sound Energy is on the verge of significant milestones with the commencement of gas production and strong partnerships in place. However, challenges remain with financial obligations, project delays, and market undervaluation.Q2-2025 Updates
Positive Updates
Gas Production Nearing Commencement
Sound Energy is on the cusp of commencing gas production in Morocco, with the LNG project expected to start production by the end of the year.
Strong Partnerships and Financing
The company has secured strong partnerships with Managem Energy and Afriquia Gas, ensuring financing for the second phase of development, with exploration wells fully funded.
Exploration Potential and New Ventures
Sound Energy has significant exploration acreage in Morocco and has formed a joint venture, HyMaroc, with Getech to explore natural hydrogen and helium opportunities.
Solar Energy Expansion
The company is partnering with Gaia Energy to develop solar projects in Morocco, aiming for 250 to 300 megawatts of installed capacity, capitalizing on the liberalization of the medium voltage grid.
Revenue and Tax Advantages
Sound Energy benefits from a 10-year corporation tax holiday in Morocco, aiming to optimize production and maximize revenue within this period.
Negative Updates
Delays in Phase 2 Development
The second phase of development is progressing slower than anticipated, with uncertainties around the final costs and timeline.
Debt and Financial Concerns
The company faces significant debt obligations, including a $24 million euro bond, and is exploring restructuring options to improve its debt-to-equity ratio.
Challenges in License Perfection
There are delays in perfecting exploration licenses, which are necessary before drilling operations can commence, impacting the exploration timeline.
Share Price and Market Valuation
Sound Energy's share price is at an all-time low, significantly undervaluing the company's investments and future potential.
Company Guidance
During the recent Sound Energy plc Interim Results Investor Presentation, Executive Chairman Graham Lyon highlighted several key metrics related to the company's progress and future prospects. The company is on the brink of production, with the first phase involving a small-scale LNG project expected to be operational by the end of the year. The project is anticipated to generate approximately 10 million cubic feet per day of sales gas, contributing to a total expected revenue of $120 million annually from both phases. Sound Energy has secured a 10-year take-or-pay contract for 100 million cubic meters per year with Afriquia Gas, priced at around $8 per unit. Furthermore, the company has 377 billion cubic feet of raw gas volumes, with two signed gas sales agreements covering around the 1C, 1P reserve level. The exploration upside remains promising, with two fully-funded exploration wells planned, providing the potential to significantly boost the company's reserves and share price. Additionally, Sound Energy is benefiting from a 10-year corporation tax holiday in Morocco, enhancing its financial attractiveness. The company is also exploring renewable energy opportunities, with plans for a 20-megawatt solar project, potentially contributing £2.5 to £3 million per year in gross revenue. Sound Energy's strategic partnerships with Mana Energy and Afriquia Gas, both substantial local players, underpin its robust positioning in Morocco's transitioning energy sector.Sound Energy Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 4.00K | 43.00K | 223.00K | 0.00 |
| Gross Profit | -42.00K | -128.00K | 4.00K | 5.72M | 4.25M | -9.78M |
| EBITDA | -5.36M | -124.19M | -6.73M | 6.55M | 2.56M | -15.18M |
| Net Income | -8.12M | -150.82M | -7.16M | 4.97M | 2.42M | -22.12M |
Balance Sheet | ||||||
| Total Assets | 51.56M | 58.39M | 204.22M | 212.06M | 176.59M | 171.81M |
| Cash, Cash Equivalents and Short-Term Investments | 2.83M | 7.89M | 3.02M | 3.86M | 2.91M | 4.47M |
| Total Debt | 37.83M | 37.71M | 33.41M | 30.47M | 20.04M | 24.74M |
| Total Liabilities | 39.97M | 41.37M | 37.51M | 33.97M | 21.54M | 26.95M |
| Stockholders Equity | 11.60M | 17.02M | 166.71M | 178.09M | 155.06M | 144.86M |
Cash Flow | ||||||
| Free Cash Flow | -10.44M | -8.14M | -3.75M | -5.84M | -2.96M | -3.11M |
| Operating Cash Flow | -6.42M | -3.50M | -1.50M | -3.92M | -1.55M | -1.83M |
| Investing Cash Flow | 4.55M | 3.80M | -2.95M | -6.19M | -1.20M | -1.28M |
| Financing Cash Flow | 2.39M | 4.35M | 3.82M | 10.42M | 1.09M | 3.19M |
Sound Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
53 Neutral | £19.56M | -2.41 | -45.38% | ― | ― | ― | |
53 Neutral | £18.45M | -2.68 | ― | ― | ― | ― | |
50 Neutral | £22.31M | -2.14 | -56.16% | ― | ― | ― | |
49 Neutral | £20.11M | -19.89 | -1.55% | ― | 65.32% | 97.00% | |
48 Neutral | £29.17M | -9.88 | -12.26% | ― | ― | ― | |
44 Neutral | £32.67M | -20.24 | -6.74% | ― | ― | ― |
* Energy Sector Average
GB:SOU
Sound Energy
0.94
0.06
7.43%
GB:EOG
Europa Oil & Gas (Holdings)
1.90
1.00
111.11%
GB:JOG
Jersey Oil and Gas
100.00
31.00
44.93%
GB:ZEN
Zenith Energy
3.58
-2.32
-39.32%
GB:MATD
Petro Matad
1.20
-0.35
-22.58%
GB:PRD
Predator Oil & Gas Holdings Plc
4.25
-2.75
-39.29%
Sound Energy Corporate Events
Business Operations and StrategyProduct-Related Announcements
Sound Energy Commences Gas Commissioning at Tendrara Development
Positive
Dec 8, 2025
Sound Energy PLC announced the commencement of initial commissioning activities for the TE-5 Horst development project at the Tendrara Production Concession, marking the entry of first gas into the gas gathering system. This development, in collaboration with Mana Energy Ltd and Italfluid Geoenergy S.r.l., aims to supply LNG to Moroccan industrial consumers under a ten-year agreement with Afriquia Gaz. The project is expected to generate revenue from late Q1 or Q2 2026, positioning Sound Energy as a revenue-generating entity and advancing its role in Morocco’s energy transition.
Business Operations and StrategyExecutive/Board Changes
Sound Energy PLC Appoints New CEO to Drive Growth
Positive
Oct 15, 2025
Sound Energy PLC has announced the appointment of Majid Shafiq as the new Chief Executive Officer, succeeding Graham Lyon, who will transition to a non-executive Chairman role. Majid Shafiq brings over 35 years of experience in the energy sector, with a strong track record in growing businesses and creating shareholder value. His leadership is expected to drive Sound Energy’s growth, focusing on revenue generation, portfolio expansion, and capitalizing on opportunities in the Moroccan energy market. This strategic leadership change is anticipated to enhance the company’s operations and strengthen its position in the energy transition sector.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.